12th Feb 2019 11:48
LONDON (Alliance News) - BlackRock Throgmorton Trust PLC said Tuesday it outperformed its benchmark in the twelve months to the end of November but saw a drop in net assets.
BlackRock Throgmorton - which invest in small and mid-cap equities listed on the London Stock Exchange - said its net asset value per share at November 30 stood at 519.08 pence compared to 542.66p the year before, a 4.3% decrease.
In the year to November 30, the trust's net assets also decreased 4.3% to GBP379.6 million from GBP396.8 million the year before.
BlackRock Throgmorton's net asset value total return in the period was negative 2.7% compared to its benchmark, Numis Smaller Companies plus AIM (excluding Investment Companies), losing 9.0%.
Investment Manager Dan Whitestone said: "Ongoing shifts in geopolitical sentiment, both in the UK and broader global economy, have resulted in large swings in markets during the year. Notwithstanding strong stock specific wins, a market that falls 9% is undoubtedly a challenge for a predominantly long-only vehicle."
Whitestone said the largest positive contributor to the trust's portfolio was its holding in insurance firm Hiscox Ltd. Its holding in IntegraFin Holdings PLC also made a positive contribution to the outperformance of the benchmark.
The investment manager noted Fever-Tree Drinks PLC, which continues to beat profit expectations, video games developer Sumo Group PLC and marketer of promotional products, 4imprint Group PLC as other positive contributors.
The trust paid a total dividend of 10.0p during the period compared to 9.0p the year before, an 11% hike.
"In the UK, the ongoing Brexit related uncertainty has weighed on the performance of the equity markets during the year. This, coupled with global macroeconomic and geopolitical headwinds such as US-China trade tensions, rising US interest rates, inflationary pressure and increasing volatility, has affected market sentiment both in the UK and more widely. The portfolio is now more defensively positioned with market exposure having been reduced in anticipation of a general slowdown in global growth and the continuing political headwinds faced by the domestic economy," said Chair Christopher Samuel.
Samuel added: "Against this challenging backdrop, your portfolio manager believes that we are well positioned to continue to outperform. The portfolio is constructed of high quality companies which have robust business models, strong cash flows, favourable industry characteristics and which are led by strong management teams."
The investment trust announced it has appointed Louise Nash to the board and Andrew Pegge has resigned from the board.
Shares in BlackRock Throgmorton were broadly flat on Tuesday at 493.22 pence each.
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Throgmorton Trust